Market Landscape - Five Key Pressure Points
Investor Relationship Management
• KYC and Mifid
• Client restrictions
• Profiling
Compliance
• Pre and Post trade checking
• Best execution
Increased Instrument Complexity
• Hedge Funds
• Private Equity
• Derivatives
Risk Management
• VAR, Scenarios, stress testing
Client Reporting
Since 2005 the Investment management community has been going through rapid and profound change. As markets expand and information proliferates, clients and prospects are becoming increasingly more difficult to obtain and retain. Asset Managers and Private Client Managers are finding it hard to keep pace with the demands of their clients' broadening product requirements and use of ever more complex instruments. Combine these challenges with MIFID, KYC, individual and corporate compliance requirements and risk management techniques that have previously been confined to the institutional markets and it is easy to see how organisations are becoming overwhelmed.
In order to cope organisations are creating multiple data silos on spreadsheets, accounting systems, portfolio management systems, pricing systems, risk and performance systems, CRM systems as well as third parties such as custodians, administrators and fund providers . The data integration nightmares of old are returning as are the inevitable errors in decision making and client reporting. The consequences are enormous inefficiencies, higher staff costs and turn over and the impact on the business is expensive, frequently reputational and in some cases even litigious.
In addition the highly competitive nature of the market for new money, new talent and the battle for client retention is pushing Investment Managers to become more sales and service driven. Deployment of CRM packages has been, for the most part, a complete failure as “off the shelf” systems are not geared for use within our specific market and crucially have not been embedded into the investment management process.